For Privacy Preserving Communications Both Anonymity and end to end encryption mechanism is essential. Identity Based Encryption technique is best suitable for secure and anonymous communications. For solving anonymous and secure communication problems both cryptographic and IBE based protocols needed which governs the proper communication between two parties. For the purpose of authentication of the user proxy server is maintained between user and service providers. The GM and KGC are essential in anonymous communication for issuing both signing and decryption keys for getting plaintext from ciphertext in original form. Public key encryption and digital signature mechanism needed for guarantees of secure communication between both ends. Finally protocol realizes secure and anonymous communication between sender and receiver.